MRK Holdings, Inc. (9980) AI Stock Analysis

• Market Cap: ¥9.72B
• Dividend Yield: 1.05%
• Average Volume (3M): 522.25K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.42
• Revenue Growth: 6.19%
• EPS Growth: 79.98%
• Country: JP
• Employees: 1,788
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.05
• Shares Outstanding: 101,295,074
• 10 Day Avg. Volume: 294,200
• 30 Day Avg. Volume: 522,246
• PEG Ratio: 2.47
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 5.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥104.00 ▲(13.04% Upside)

MRK Holdings, Inc. has a strong financial foundation with solid revenue growth and a healthy balance sheet. However, the stock faces challenges with low profitability and bearish technical indicators. The valuation suggests the stock is relatively expensive, and the dividend yield is modest. These factors contribute to a moderate overall stock score.

Positive Factors

Balance Sheet Strength

A very low debt-to-equity ratio and high equity backing reduce financial risk and preserve strategic optionality. This balance sheet strength supports capital allocation for acquisitions, R&D, or cyclic downturns without forcing distress sales or excessive refinancing.

High Gross Margins

Sustained 74.6% gross margin indicates structural cost advantages or pricing power in core activities. Such high underlying margins provide a durable buffer to cover fixed costs, fund investments, and enable margin expansion if operating efficiencies or scale improvements are realized.

Improving Cash Generation

A shift to positive free cash flow and strong OCF-to-net-income ratio denote improving cash conversion. Durable cash generation enhances ability to fund capex, service obligations, and pursue strategic investments without heavy reliance on external financing.

Negative Factors

Low Net Profitability

A 1.2% net margin suggests most revenue is absorbed by operating and non-operating costs, limiting retained earnings and reinvestment capacity. Persistently low net profitability constrains long-term returns to shareholders and resilience against adverse market shifts.

Weak Operating Margins

Modest EBIT and EBITDA margins point to structural operating inefficiencies or high overhead relative to revenue. Even with strong gross margins, weak operating margins limit free cash flow expansion and leave less room to absorb cost inflation or invest for growth.

Holding-Company Complexity

A broad, multi-sector holding structure can dilute management focus and create integration complexity across subsidiaries. Over time this can hinder consistent operational improvement, obscure capital allocation priorities, and produce uneven returns across business lines.

MRK Holdings, Inc. Business Overview & Revenue Model

Company Description

MRK Holdings Inc. engages in the maternity and baby related business in Japan. The company offers maternity wear, nursing clothes, maternity innerwear, baby wear, and baby gifts. It is also involved in the body makeup, beauty, and wedding and banquet related businesses. The company was formerly known as Maruko Co., Ltd. and changed its name to MRK Holdings Inc. in October 2018. MRK Holdings Inc. was incorporated in 1978 and is headquartered in Osaka, Japan. MRK Holdings Inc. operates as a subsidiary of RIZAP GROUP, Inc.

How the Company Makes Money

MRK Holdings generates revenue through a multi-faceted model that includes strategic investments in subsidiary companies, joint ventures, and partnerships in key sectors. The company earns income from equity stakes in its subsidiaries, which provide dividends and profit-sharing arrangements. Additionally, MRK Holdings engages in licensing agreements and technology transfers, allowing it to monetize its proprietary innovations. The firm also benefits from consulting services, where it advises other businesses on operational efficiencies and market strategies. Key partnerships with industry leaders further enhance its revenue potential by expanding market reach and facilitating collaborative projects that drive mutual growth.

MRK Holdings, Inc. Financial Statement Overview

Summary

MRK Holdings, Inc. shows solid revenue growth and strong gross margins, supported by a healthy balance sheet with low leverage. However, profitability is challenged by low net margins and moderate returns on equity. Cash flow has improved but still requires attention for long-term financial health.

Income Statement

MRK Holdings, Inc. has demonstrated consistent revenue growth with a 8.0% increase from 2024 to 2025. The gross profit margin remains strong at 74.6%, indicating efficient cost management. However, the net profit margin is relatively low at 1.2%, suggesting limited profitability after expenses. EBIT and EBITDA margins are modest at 2.2% and 6.0% respectively, reflecting operational challenges.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.10, indicating prudent leverage. The equity ratio is robust at 72.4%, showcasing strong asset backing by equity. Return on equity is modest at 1.7%, reflecting moderate profitability relative to shareholder investment.

Cash Flow

MRK Holdings, Inc. has shown improvement in free cash flow, turning positive in 2025. The operating cash flow to net income ratio is strong at 6.7, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is lower at 5.6, suggesting room for improvement in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.41B	21.15B	19.58B	19.54B	18.83B	18.33B
Gross Profit	15.97B	15.79B	14.76B	14.84B	14.34B	14.11B
EBITDA	1.13B	1.27B	1.02B	1.25B	918.79M	990.51M
Net Income	338.02M	254.16M	225.27M	514.14M	423.42M	121.81M
Balance Sheet
Total Assets	18.97B	20.20B	22.02B	18.05B	17.34B	18.01B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.12B	2.56B	2.56B	5.29B	7.28B
Total Debt	1.06B	1.54B	3.67B	175.36M	125.93M	732.95M
Total Liabilities	4.70B	5.57B	7.46B	3.80B	3.55B	4.65B
Stockholders Equity	14.27B	14.63B	14.56B	14.25B	13.80B	13.36B
Cash Flow
Free Cash Flow	0.00	1.43B	-1.15B	-802.37M	-298.09M	2.41B
Operating Cash Flow	0.00	1.71B	-849.03M	-264.54M	101.72M	2.94B
Investing Cash Flow	0.00	442.01M	-2.41B	-2.23B	-1.29B	-1.00B
Financing Cash Flow	0.00	-2.60B	3.27B	-239.05M	-782.97M	424.17M

MRK Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9980, the sentiment is Positive. The current price of 92 is below the 20-day moving average (MA) of 96.05, below the 50-day MA of 94.32, and below the 200-day MA of 92.14, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9980.

MRK Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3320	71 Outperform	¥10.08B	6.45	―	2.77%	-2.28%	36.25%
3123	70 Outperform	¥8.01B	7.55	―	2.75%	-4.76%	8.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9980	60 Neutral	¥9.72B	19.88	―	1.05%	6.19%	79.98%
3571	56 Neutral	¥10.23B	33.27	―	5.32%	-1.19%	-87.79%
8127	48 Neutral	¥12.37B	81.66	―	3.35%	-8.02%	-59.42%
9885	44 Neutral	¥5.48B	-4.98	―	2.23%	-0.67%	-453.71%